The Local Effects of the Texas Shale Boom on Schools, Students, and Teachers

This study explores how the Texas shale boom affected schools, students, and teachers. Using variation in geology across school districts and oil prices over time, the evidence shows that test scores and attendance in the average shale district declined despite the boom tripling the tax base and creating a revenue windfall. Greater spending went to capital projects and servicing debt, not to teachers. Although higher wages may not have affected completion rates, a growing gap in wages between the private and education sectors contributed to greater teacher turnover and more inexperienced teachers, which help explain the declines in student achievement.